Investment in Commercial Real Estate Grows by More Than 60%: The Return of Funds to Portugal
- Redação Mudei e Agora
- 2 days ago
- 2 min read
Investment in commercial real estate in Portugal registered growth exceeding 60% up to the third quarter of 2025, marking a clear return of institutional capital to the national market. After a period of greater caution caused by rising interest rates, high inflation, and macroeconomic uncertainty, investors have once again turned to Portugal as an attractive destination within the European context.
This growth is not homogeneous across all segments. Capital has been directed primarily towards assets considered resilient, capable of generating stable returns in a context of greater selectivity. Among these, logistics, food retail, and prime offices stand out.
Logistics has been one of the big winners in the current cycle. The expansion of e-commerce, the reorganization of supply chains, and the European "nearshoring" strategy have increased the demand for modern, well-located, and energy-efficient warehouses. Portugal benefits from its strategic geographical position and improved infrastructure, making it competitive compared to other markets in Southern Europe.
The food retail sector remains a defensive segment. Supermarkets, retail parks, and assets with solid operators continue to attract investors due to the predictability of cash flows and lower exposure to adverse economic cycles. Even in a scenario of slowing consumption, the demand for essential goods sustains occupancy and rent stability.
The office market, on the other hand, is undergoing a transformation. Demand is concentrated on high-quality, well-located buildings with strong energy performance and prepared for hybrid work models. Obsolete, poorly located, or inefficient assets face increasing difficulties in attracting investment, leading to a clear market segmentation.
A factor common to all segments is the growing importance of ESG (Environmental, Social, and Governance) criteria. For many international funds, these criteria have ceased to be optional and have become decisive in investment decisions. Buildings with low energy efficiency or without adaptation plans face the risk of devaluation, a phenomenon known as brown discounting.
Despite the significant growth in investment, there are risks to consider. Increased competition for quality assets has put pressure on prices and compressed yields, reducing future margins. Furthermore, regulatory uncertainty, taxation, and interest rate fluctuations remain critical variables for investor appetite.
For Portugal, this return of institutional investment represents a strategic opportunity. It can contribute to the rehabilitation of the real estate stock, modernization of assets, and strengthening the country's competitiveness in the European context. However, it requires regulatory stability, fiscal predictability, and coherent urban policies to guarantee sustainable growth.
In short, the increase in investment in commercial real estate is a clear sign of confidence in the Portuguese market, but also a warning: only quality, sustainable, and well-managed assets will continue to attract capital in the medium and long term.
Source: Vida Imobiliária — Commercial Real Estate Investment Reports (Q3/Q4 2025)
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